What's Happening?
Hyundai and Kia have reached a settlement with 35 states, including California, New Jersey, New York, and Pennsylvania, to provide free repairs to millions of vehicle owners. The settlement addresses the lack of engine immobilizers in certain models,
which left them vulnerable to theft. The issue gained attention after videos on TikTok demonstrated how to steal these cars using simple tools. The settlement, led by Minnesota Attorney General Keith Ellison, requires Hyundai and Kia to offer free repairs to eligible vehicles, which could cost over $500 million. Additionally, the automakers must equip all future U.S. vehicles with engine immobilizers and pay up to $4.5 million in restitution to affected individuals.
Why It's Important?
The settlement is significant as it addresses a widespread issue affecting millions of vehicle owners across the U.S. The lack of proper anti-theft technology in Hyundai and Kia vehicles led to a surge in thefts, resulting in crimes and accidents, some of which were fatal. By mandating the installation of engine immobilizers in future models, the settlement aims to prevent further thefts and enhance vehicle security. This move could restore consumer confidence in the brands and reduce insurance claim rates, which were notably higher for these vehicles compared to the industry average.
What's Next?
Eligible Hyundai and Kia owners will have one year from the notification date to receive free repairs at authorized dealerships, with repairs expected to be available from early 2026 through early 2027. The automakers will also continue distributing steering wheel locks and implementing software upgrades to further reduce theft rates. The settlement may prompt other automakers to review their security features to prevent similar issues. Additionally, the legal and financial implications of this settlement could influence how automotive companies address safety and security concerns in the future.
